ECONOMIC GUIDING LINES OF ECONOMIC GUIDING LINES OF FOREST SECTOR DEVELOPMENT FOREST SECTOR DEVELOPMENT STRATEGIC PLANNINGSTRATEGIC PLANNING

Anatoly Petrov, rector, Professor, Dr.Ec.Sc.

All-Russian Institute of Continuous Education in

Forestry

MARCH 13, 2013HELSINKI, FINLAND

№№

Kinds of plan Level Approval Period Target

Who When

1 Long-term strategy of forest complex development

Federal Ministry of IndustryMinistry of Agriculture

2008 Until 2020

To create effective branch and regional structure of forest sector

2 State programme “Development of forestry from 2013 until 2020”

Federal Government of the Russian Federation

2012 December

Until 2020

Effective allocationsof budget fundings

Slide 2STRATEGIC PLANS OF FOREST SECTOR STRATEGIC PLANS OF FOREST SECTOR

DEVELOPMENT IN THE RUSSIAN FEDERATIONDEVELOPMENT IN THE RUSSIAN FEDERATION

Slide 1

№№

Kinds of plan Level Approval Period Target

Who When

3 Prognosis of long-term social-economic development of the Russian Federation until 2030Division: forest industries complex

Federal Government of the Russian Federation

December 2012

Until 2030

To create the branch and regional priorities of forest sector

4 Forest plan of the Subject of Federation

Regional Regional authorities

2008 10 years Sustainable management of forest resources

5 Regional programm of forestry development

Regional Regional authorities

2012-2013 Until 2020

Budget allocations

Slide 2THE RUSSIAN FEDERATION FOREST THE RUSSIAN FEDERATION FOREST SECTOR OUTLOOK STUDY TO 2030 SECTOR OUTLOOK STUDY TO 2030

(FAO PROJECT)(FAO PROJECT)

1. The idea to carry out the Russian Forest Sector Outlook Study belonged to FAO.2. This idea was supported officially by the Federal Forest Agency of the Russian Federation.3. Period of study: September 2011-June 20124. 22 russian experts contributed to the study.5. Forest Sector Outlook Study was presented to: 5.1. FAO Forestry Committee – Rome, September 2012 5.2. European Economic Commission – Geneva, October 2012

1. The idea to carry out the Russian Forest Sector Outlook Study belonged to FAO.2. This idea was supported officially by the Federal Forest Agency of the Russian Federation.3. Period of study: September 2011-June 20124. 22 russian experts contributed to the study.5. Forest Sector Outlook Study was presented to: 5.1. FAO Forestry Committee – Rome, September 2012 5.2. European Economic Commission – Geneva, October 2012

THE FOREST SECTOR IN FIGURES, THE FOREST SECTOR IN FIGURES, 20102010

Slide 7THE RUSSIAN FEDERATION FOREST THE RUSSIAN FEDERATION FOREST SECTOR OUTLOOK STUDY TO 2030 SECTOR OUTLOOK STUDY TO 2030

INCLUDESINCLUDES

1. Forest resources development estimation

2. Methods to estimate the demands for

forest products,

3. Wood harvesting and its consumption,

4. Forest industries development,

5. Forest reproduction and protection,

6. Forest policy and legislation development

Slide 3

FOREST SECTOR DEVELOPMENT FOREST SECTOR DEVELOPMENT UNDER INERTIAUNDER INERTIA

Forest sector keeps existing trends of wood consumption, wood supply and demand in domestic and export markets, volume of investment and leasing system to access forest resource. As result the forest sector will be outside economic and political priorities with low contribution to gross domestic revenue (about 1,3% in 2010)

Slide 4

Innovation development based on the high annual rates of macroeconomic indicators growth.

The low level of annual growth of gross domestic revenue will be higher than 4%.

Under this scenario main factor to develop sector will be growth of demand for wood products in the domestic market under state support.

Substitution of forest leasing system by concessions and forest privatization are considered as additional stimuluses to keep the high rates of output production and investment.

Slide 5

This scenario will take place when it would be necessary to overcome negative consequences of unpredictable political and economical events on the global and national levels.

Under transition scenario existing system of forest management is to be revised and technological processes in forest industries are to be modernized.

During transition period forest sector is to be adopted to the WTO principles.

Slide 6

Planning targets

Planning targets

Demand for forest

products and

services

Demand for forest

products and

services

Forest resources

supply

Forest resources

supply

Forest administration

and management

Forest administration

and management

Slide 7

Domestic market

Export market

Demand for forest products

Public sector

Regions, countries

Slide 8

Population

WTOrules

Forest inventory data

Potential (biological) resources

LossesReal (physical)

resources

Rates of production

losses

Unaccessible resources

Economically accessible resources

Rates of production

losses

Criteria of Economic

accessibility

Losses

Slide 9

STRATEGIC FOREST PLANNING IS TO STRATEGIC FOREST PLANNING IS TO BE BASED ON THE EFFECTIVE SYSTEM OF BE BASED ON THE EFFECTIVE SYSTEM OF

FOREST LAW ENFORCEMENT AND FOREST LAW ENFORCEMENT AND GOVERNANCEGOVERNANCE

This system is to be improved by:This system is to be improved by:

1.1.Development of new forms of public – private Development of new forms of public – private partnership in forest sector,partnership in forest sector,

2.2.Liberalization of economic relations between Liberalization of economic relations between public authorities and private business,public authorities and private business,

3.3.Development of property rights for forest Development of property rights for forest land, land,

4.4.Strengthing of capacity building of forest Strengthing of capacity building of forest administration,administration,

5.5.Development of forest certification.Development of forest certification.

Slide 10

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